Xbox Acquisition |OT3| 100% Organic Growth

The more gaming content they have the more other stuff they sell too, merch, games, microtransactions etc.

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It’s one of the patreon only shows. I sub to get defining dukes early but if colin has a guest on I’ll give his show a listen.

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depends really if publisher is on the market right now MS will try to bid on it but there is no guarantee they will get it .

Satya himself said more acquisitions in similar nature of Zenimax was still on the menu.

I personally believe we’ll see at least two more publishers of varying sizes acquires. My hope is that one of them will be WBIE.

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this is about their 360 suite offer and Azure, how is this related to Xbox game pass ? enterprise and consumers are different markets

Ill be shocked if Microsoft dont acquire Paradox.

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To me, it seems they’re more like they were in 2018 where they are working closely with devs, and nurturing partnerships. IOI, CD, Avalanche etc. Zenimax was an outlier.

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With regards to WB, if anything happens there, I’d say MS would just buy individual from them. Specifically Nethherealm

yes it was opportunity,if they got same opportunity then will go after it just like What happened WB. MS saw Zenimax as good investment so they paid premium for it.

the question here what MS want next ? will MS pay premium for publishers like let say Sega ? do they see them in same light as zenimax ?

Zenimax even in $7.5B it was really good get

They make sense but I don’t see there being a real rush for that. Almost everything they do is on gamepass and it doesn’t seem like many people are pursuing PC as much as console and mobile.

Honestly I think MS would be most interested in TT games. Nether wouldn’t be far behind though

any new info on wb ? if NetherRealm on the market then it’s worth it paying premium for this studio with MK IP

Like many of us have echoed before, another publisher acquisition makes the most sense from various perspectives:

1.) IP: Microsoft has made it very clear they want IP and obviously the bigger the IP, the better. Each studio acquisition brought its own respective IP (or leadership over an IP Xbox owned already). I would say its clear that the Zenimax acquisition gave us multiple “holy crap” moments all in one when it came to the IP involved. The Elder Scrolls, Fallout, DOOM, Wolfenstein, Dishonored, etc.

This kind of moment doesn’t just instantly increase the armada of properties under Xbox/Microsoft’s belt, but also immediately increases the plethora of games that are available to be thrown into Game Pass. The best part? They own them, so there’s no worries about paying out extra fees to keep a third party title into the service.

2.) Studios/Teams: Most publishers have their own internal studios and/or teams. Some much bigger than others. Acquiring a publisher the size of Take Two, EA, and even SEGA/Capcom not only expands your workforce, but even your production pipeline exponentially. Especially when you have studios that have multiple internal teams (or even work with external partners like Coalition/Splash Damage, 343i/Creative Assembly, ID/Avalanche, etc.).

This also makes the issue of hiring more employees at each studio a little less of a problem. While yes, you want each team to be fully staffed, some of these individuals at these studios may specialize at doing support work or may be willing to give an extra hand like we’ve already seen between the XGS/Bethesda teams.

3.) Management: Managing a studio is already a difficult job on its own. Imagine overseeing 5+ of them. With that in mind, think, how can Microsoft keep adding more teams/studios without having to worry too much about making sure they are properly looked for, while also not overworking Matt Booty (or whoever ends up in his position)?

Sure, you can hire another talented management professional, but wouldn’t it be easier just to buy a group that can already self-manage themselves in just about every aspect (including self-publishing, marketing, etc.)? Publishers already have this infrastructure in place and acquiring that could easily save time and avoid roadblocks for both Microsoft and the new entity absorbed into them.

4.) Industry News Cycle: The Zenimax acquisition was one of the biggest stories of last year. It was something that you could easily see speculation, discussion, etc. for after the initial announcement, when more games got added to Game Pass, when rumors circulated about the deal wrapping up, once the deal wrapped up, the interview styled meeting after the they did, and of course the big wrap-up for the next showcase.

Heck, we remember when even this very website had the meltdown over the “some” statement. There was traction non-stop throughout those months and that’s vital to both keeping Xbox’s name in conversation (more than they already are) and giving the studios/teams from both Bethesda and XGS more exposure.

And that concludes today’s Ted Talk! Hope you’re all ready for my next studio wish list! :smiley: 5.) Tech

Microsoft is a tech company. They’re constantly investing in new AI technologies, buying out companies with useful patents, or expanding on business ventures that can benefit their overall image and presence for the long term (whether it be publicly noticeable or not). Game engines, development methods, motion capture technologies, etc. are all vital to Xbox/Microsoft’s dominance in the gaming space, no matter if these are applied to external partners or not through Game Stack or other means.

6.) Future: Now, this is all great, but what does it lead to?

The biggest thing is future titles. Not only will we get our favorite classics like Halo, Gears, Forza, Minecraft, etc., but now we can get sequels, remakes, reimaginings, remasters, and the sort for a whole bunch of these classic IPs. No matter if they are mega blockbusters, cult classics, or even titles that may have not stuck the landing but could be greatly improved with another entry.

An even more exciting prospect is the new IPs that can be made with having so many teams. The gaming industry is driven (mostly) by creativity. Whether that means new gaming IPs or even new mechanics or ways to play. This always brings a fresh coat of paint to a brand and can even lead to some of these newer games to perform as well or even outperform the current leading internal IP.

TL;DR: Xbox is playing the long game. A publisher speeds up the process while also securing a long term growth strategy. Its a win-win for Microsoft no matter how you slice it and there isn’t a way you could convince me otherwise.

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Well said, great post

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It just goes against what’s being said by Klob, Jeff Grubb etc. That they are aiming for smaller studios. Zenimax was just the perfect storm, every box was ticked, the other publishers have all got major weaknesses around them.

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But you didn’t believe the internal time frames that Gubb leaked :sneezing_face:

Cause everything on that list is tentative which Grubb himself stated a few days ago.

Per chance Hindle, I’m curious, why do you always push things so far out?

Is it because of the reality of COVID, or is it like when shooting a movie, you make sure you get enough coverage in editing?

Say 2025 so if the game comes out in 2024 it’s better?

Game development is incredibly complex, in this day and age. Factor in covid, and it takes even longer. People laugh, but its more realistic to expect games later then sooner.

No project is that far out really. We are almost in 2022, so 2027 is 5 years away. A big AAA game takes upon average 5 years to make.

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True.